National Income

National income is the measure of the total money value of goods and services, which arise from the productive activities of a nation in any accounting period, usually one year.

The definition above outlines the following:-

  • National income is measured per period of time.
  • National income measures both goods and services.
  • National income is measured in monetary terms.

However, the interest is in the value of the commodities produced and not the money itself.